# Term sheet

A lender's written but non-binding summary of the loan it expects.

Holding two or three at once gives a first-time borrower real bargaining power. Competing offers rarely disagree on just one number, which is what makes them hard to compare in your head. Read past the rate to the fees, the term, the covenants, and what the lender still has to confirm. A quarter point is worth far less than a year of [amortization](https://searchspheresource.com/glossary/amortization) or a covenant you will breach in month eight. Nothing here is binding, so treat it as the lender's opening position rather than a decision.

In numbers: A lender's term sheet on a $3,600,000 loan might read: 10 years, prime plus 2.75%, a 10% injection with half allowed as a standby [seller note](https://searchspheresource.com/glossary/seller-note), and a lien on business assets. None of it is a commitment yet; it is the shape the commitment will take if underwriting agrees.

Source: https://searchspheresource.com/glossary/term-sheet
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt